Indonesia is preparing a broad strategy to revive its textile industry, protect existing employment and create up to 500,000 new jobs by 2030 through the expansion of polyester, textile and garment manufacturing.
The initiative comes after nearly 80,000 textile workers reportedly lost their jobs in 2025, making the labour-intensive industry the largest contributor to layoffs in the country.
Government Moves to Protect Existing Textile Jobs
Said Iqbal, special adviser to President Prabowo Subianto on labour and workers’ welfare, outlined the government’s plans during a working visit to Asia Pacific Fibers (APF) at Kendal Industrial Park in Central Java.
During the visit, Said received an appeal from 850 workers represented by the APF Mandiri labour union. Employees expressed concerns about the company’s continued operation and the security of their jobs.
“We cannot wait until factory doors close and thousands of people lose their jobs before taking action,” Said said. “Early detection is the wisest and most humane step. That is what we are doing today.”
According to Said, protecting existing employment will be an essential part of Indonesia’s wider job-creation strategy. The government will review policies that could affect manufacturers’ ability to remain operational and retain their workforces.
The approach represents an attempt to intervene before struggling companies reach the point of closure. The immediate priority is to stabilise manufacturers that remain operational before pursuing wider industrial expansion.
Integrated Textile Supply Chain Planned for Java
The government is also considering the development of an integrated textile industry across Central and West Java.
The proposed ecosystem would connect large textile manufacturers with supporting industries, micro and small enterprises, cooperatives and home-based businesses through a more coordinated supply chain.
The objective is to strengthen domestic production networks, improve efficiency and increase the competitiveness of Indonesia’s textile sector.
“The textile industry is the backbone of the people’s economy,” Said said. “It absorbs a large workforce and supports various businesses. Therefore, this backbone cannot be allowed to bend.”
Indonesia’s textile and garment industry supports employment across fibre and polymer production, spinning, weaving, knitting, dyeing, finishing, garment manufacturing and related services. Greater integration between these operations could help reduce supply-chain inefficiencies and retain more value within the domestic economy.
Read More: Indonesia Plans US$6 Billion Textile SOE to Counter Tariffs, Import Pressures
Polyester, Textiles and Garments at Centre of Employment Plan
The target of creating 500,000 jobs by 2030 will be pursued gradually through the strengthening and expansion of the polyester, textile and garment industries and their supporting ecosystems.
The strategy is expected to cover several areas, including domestic industry protection, access to finance, investment support, supply-chain development, productivity improvements, market expansion and worker protection.
Implementation will require coordination between government ministries, provincial authorities and state-owned financial institutions. Participants are expected to include the Ministry of Finance, Ministry of Industry and the provincial governments of Central and West Java.
“President Prabowo’s direction is clear: the state must protect the people and create jobs,” Said said. “Therefore, fiscal, industrial, trade and labour policies must move in the same direction.”
Indonesia Looks to Regain Regional Competitiveness
Indonesia has an established textile manufacturing base, a large domestic market, an experienced workforce and extensive production networks. However, the sector has faced pressure from factory closures, imported products, financing challenges and competition from other Asian manufacturing centres.
Said argued that these existing industrial strengths could support the sector’s revival and help Indonesia improve its regional position, including against competitors such as Vietnam.
“Do not allow layoffs to happen,” he said. “Save industries that are still operating, then expand them to create new jobs.”
The scale of the government’s employment target demonstrates the importance of textiles to Indonesia’s industrial and social policies. Achieving it, however, will depend on whether coordinated financial, trade and industrial measures can stabilise existing manufacturers while generating sustainable new investment.
The loss of nearly 80,000 textile jobs in 2025 highlights the urgency of the challenge. Preventing further layoffs may therefore be just as important as attracting new factories and expanding production capacity.
